For a Product Made by George Company,last Year's Standards for Labor

question 100

Multiple Choice

For a product made by George Company,last year's standards for labor were 2 hours at $12 per hour.Which of the following considerations should George take into account in setting the standards for this year?

• A) George should revisit the prior year standards.
• B) George should consider whether or not the prior year standards were achieved.
• C) George should consider any changes that may influence worker productivity.
• D) All of these answers are correct.

---

Definitions:

Voting Common Stock

Shares that grant the shareholder the right to vote on corporate policies and board elections.

Equity Method

An accounting technique used by companies to assess the profits earned through their investment in other companies.

Internal Accounting

The process of preparing financial information for use by management within the organization, not for external stakeholders.

Net Income

The total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue, indicating the company's financial performance over a period.